Do You Have Too Many Moving Parts in Your Business?


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Do you know all the moving parts of your business?  Really?  And if you know them all, are they all actually moving, or just spinning away chewing up your profit margins?

A business is like a vehicle.  You can spend as much as you want, and accessorize it as much as you want, but the ultimate purpose is to get you to your destination period.  So obviously the ultimate purpose of your business is to be profitable.  It doesn’t really matter if you have the best systems/processes (accessories), in the world if things are just spinning out of control (or worse, not spinning at all).

How do you know what moving parts are essential?

An easy way to tell would be to shut one of them off and see what happens.  That “might” be a little drastic though.  Ultimately, the best way is to work backwards.

  1. What part of your business do you enjoy the most?  (No, your administrative assistant does not count).
  2. What part of your business produces the most income?  Are they the same thing?  If not, can you combine them somehow?
  3. What processes/parts are critical?

Whether you enjoy a portion, or all of your business, you’ll need to chunk it down. To put it very simply, you need to decide on what part of your business you “want” to work on. (That topic is for another post).

Now I know some of you are saying, “I love every part of my business”.  To that, I say, then pick the part with the highest profit and the most transformational value for your clients.  Focus on that portion until it’s running like a well oiled machine.  Then you can move onto the next area of your business.

The fewer moving parts the better.

Hopefully this example will help:  Let’s say I teach people how to whittle widgets.  BUT, I also sell supplements for widget whittlers.  Both parts of my business are so exciting and fun but managing both pieces all the time is a mess.  Last week I sent all my supplement buyers the 3rd module for widget whittling 101 by accident.  Ooops.

Teaching people how to whittle widgets pays $2,000, and 1 bottle of my widget whittling supplement is $20.  Kinda a no brainer.  It would be much better to focus on teaching, and the crucial elements of providing the education.  (Fewer moving parts).  Plus, after spending $2,000 to learn widget making, a $20 bottle of supplements should be an easy sale.

Versus…

Selling someone a bottle of supplements, then saying hey, I know you really like these $20 supplements, how would you like to give me $2,000 to learn the art of widget whittling.  Plus, supplements involve a gazillion moving parts…. packaging/shipping/regulations/other stuff/etc…

Everyone that can afford paying $2,000 can afford paying $20.  BUT, everyone that can afford paying $20 can’t always afford paying $2,000.

        
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